Xylem Inc (XYL)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,268,000 | 1,880,000 | 2,440,000 | 2,484,000 | 2,040,000 |
| Total assets | US$ in thousands | 16,112,000 | 7,952,000 | 8,276,000 | 8,750,000 | 7,710,000 |
| Debt-to-assets ratio | 0.14 | 0.24 | 0.29 | 0.28 | 0.26 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,268,000K ÷ $16,112,000K
= 0.14
The debt-to-assets ratio for Xylem Inc has exhibited a declining trend over the past five years, indicating a stronger financial position in terms of debt management. In 2023, the company's debt-to-assets ratio stood at 0.14, a significant improvement from the ratio of 0.24 in 2022. This suggests that Xylem has reduced its reliance on debt financing in relation to its total assets, potentially reducing its financial risk and enhancing its solvency.
Comparing 2023 to 2019, when the ratio was 0.30, there has been a notable decrease in the level of debt relative to assets. This downward trend indicates a positive shift towards a more conservative capital structure and improved financial health for Xylem Inc.
Overall, the decreasing trend in the debt-to-assets ratio signifies that Xylem has been effectively managing its debt levels and optimizing its asset base. This could enhance the company's ability to weather economic downturns and capitalize on growth opportunities in the future.
Peer comparison
Dec 31, 2023